No matter its past share price performance or tardy management, inarguably we know Cynata is a late phase global leader in Induced Pluripotent Stem Cell treatments, that has the largest IPSC phase 3 trial (440 patients) for Mesenchymal stem cell treatment of knee osteoarthritis underway, the first phase 3 trial of its kind (in IPSC's) globally:
https://www.globenewswire.com/en/news-release/2020/11/11/2124717/0/en/Phase-3-Osteoarthritis-Clinical-Trial-Commences.html
The trial is funded by the Australian government's National Health and Medical Research Council and is sponsored and ultimately run by the University of Sydney.
We know traditional methods of Mesenchymal Stem Cell production rely on isolation of MSCs from tissue donations, for example bone marrow or fat and arguably suffer from (to some degree); dependence upon donors; variability between donors; the relative scarcity of MSCs in adult tissue; the low proliferative capacity of adult stem cells; loss of potency and reduced efficacy associated with extensive MSC culture expansion
Per the companies own insight "since iPSCs can proliferate indefinitely, and MCAs themselves can expand into extremely large quantities of MSCs, Cynata expects to be able to manufacture all of the cells that it will ever need from a single Master Cell Bank of iPSCs – derived from a single donor." That is IPSC's offer consistent quality of cells at scale. They are an undeniable manufacturing answer to stem cell scale issues seen at other traditional MSc companies.
Sumitomo from Japan pursued Cynata in 2019 and a $2 bid valuing the company at $200 million fell over on terms:
https://themarketherald.com.au/cynata-takeover-deal-with-sumitomo-falls-through-2019-10-16/
Delays in recruiting, a lack of any commercial income, management under performance and continuing cash burn have seen the company share price descend from its 2019 highs, more recently lower on a poorly executed capital raise, involving a drawn out retail share placement ($2 million) that drove the price well below the previous $0.215 priced institutional raise ($5 million)
CYP closed at a rather ridiculous $0.135. A $24 million company. A distant cry from the $200 million Sumitomo valued the company, BEFORE, the large pre-funded Sculptor trial.
The company is enrolling for a Diabetic Foot Ulcer trial, and has an FDA cleared IND Phase 2 clinical trial of CYP-001 in patients with Graft versus Host Disease underway and a planned collaboration for new renal transplantation clinical trial, to be funded by Leiden University Medical Center (LUMC).
With such funded trials, its well patented Cymerus IP and some $15 million cash on hand (last reported Appendix 4C + $2 million from retail share placement) a $24 million mkt cap is a bit of a ridiculous valuation for a company with its Sculptor trial alone in a potential $12 billion USD market, let alone its other trials and potential applications.
Knee OA contributes to nearly 80% of the total OA burden globally, effecting nearly 2/3's of the elderly population and effects some 240 million people in the world and involving some $30 billion USD in medical treatment costs. Should CYP prove successful in its Sculptor trial alone, even Sumitomo's failed $200 million bid will surely under value the company's potential?
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